The influence of the Credit Bureau on lending
Before a loan is granted, the banks query the Credit Bureau data. The loan can only be granted if these are correct. In any case, negative characteristics are a knockout criterion. It is irrelevant whether this is an older entry and the borrower has already repaid this debt. The current income will then also no longer matter. In the event of a negative Credit Bureau entry, applicants can give up hope of borrowing in any case.
The alternative: Credit Bureau-free loans
However, not all banks act as restrictively as German institutions. Banks from Switzerland, for example, sometimes do without the Credit Bureau query and grant loans even if the entries should be negative. These loans are called Credit Bureau-free loans or Good Lender loans and, as the name suggests, are granted by foreign credit institutions. The loan application is possible both via the Internet and via credit intermediaries who offer these loans.
The most prominent credit broker in this area is Bonkredit, which has been offering loans to applicants with negative credit ratings for years. However, the amount of the loan is limited because the banks also want to limit their risk. A maximum of between 3,500 – 4,000 USD will be awarded. The term is also limited, because these loans must be repaid after 40 months.
The requirements for Credit Bureau-free loans
As with the taking out of conventional installment loans, applicants for Credit Bureau-free loans also have to meet certain requirements. This includes the age of majority, which is also a prerequisite for lending at German banks. In addition, borrowers must also be able to demonstrate permanent employment that has existed for at least six months. The unemployed and self-employed are therefore generally excluded from lending by Good Lender banks. The monthly income must also be above the seizure allowance applicable in Germany, so that the bank can pledge the income if the loan installment is not paid. However, as with installment loans in Germany, collateral does not have to be provided.